Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
While Proofpoint Inc (NASDAQ: PFPT) is likely in “the early stages of its growth opportunity,” the stock does not fully reflect macro risks, DA Davidson’s Jack Andrews said in a report. He initiated coverage of the company with a Neutral rating and a price target of $80.
Proofpoint already has more than 4,000 customers and is a leader in the security market, providing cloud-based protection focused on messaging and data security for mid to large enterprises, analyst Andrews mentioned.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Growth Opportunity
“We believe PFPT is still in the early stages of its growth opportunity,” Andrews commented. Proofpoint has either met or exceeded expectations in every quarter after becoming a publicly traded company. More than 95 percent of the company’s revenue is recurring in nature, with renewal rates exceeding 90 percent.
“Only 27% of its customer base have adopted two PFPT products, and only 19% have more than three PFPT products, which leaves considerable room for cross-selling,” the analyst wrote. He expects the company to continue generating robust growth, with FY2016 revenue being projected at $363.8 million, up 37 percent y/y, and a non-GAAP EPS of $0.08.
Valuation
Proofpoint’s stock is trading at a premium valuation, with investors likely underappreciating macro risks.
Andrews further wrote, “We believe PFPT’s stock price is highly correlated to the overall macro investor sentiment for high-growth technology stocks. Thus, in our view, shareholders of PFPT are making a bet on the overall macro environment, whether they realize it or not.”
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.